In 2020. Hudson Motors recorded an expense and corresponding liability to recognize potential losses relating...
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Accounting
In Hudson Motors recorded an expense and corresponding liability to recognize potential losses relating to a car recall of $ million. Its net income for the year was $ million. It was not able to take a deduction for tax purposes until later years when it actually paid for the expenses related to this recall. In with respect to this, Hudson Motors would have:
A
recognized a tax loss carryforward
B
recognized a deferred tax liability.
C
recognized a deferred tax asset
D
recognized a deferred equity loss
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